Can Stakk Sustain Growth Amid Currency Headwinds and Expansion Risks?

Stakk’s Breakout Year in Embedded Finance

Stakk Limited has marked a significant milestone in its evolution as a SaaS provider of embedded finance solutions, finishing calendar year 2025 with an impressive $8.53 million annual recurring revenue (ARR) run-rate. This leap reflects a staggering 355% compounded quarterly growth rate, underscoring the company’s rapid scaling following its acquisition of Radical DBX in late 2024.

The $3.56 million in booked revenue for the year, growing at 222% quarterly, signals accelerating momentum driven by organic growth among Tier 1 U.S. clients such as Robinhood, T-Mobile, Chime, and SoFi. The integration of Radical DBX’s established U.S. distribution network with Stakk’s proprietary fintech platform has unlocked immediate product-market fit, particularly in onboarding, payments, and transaction processing workflows.

Strategic Acquisition Fuels U.S. Expansion

Radical DBX’s acquisition was a pivotal move, enabling Stakk to transition from early-stage revenue to meaningful scale within a highly competitive embedded finance landscape. The combined entity, now operating under the Stakk IQ brand, has leveraged this synergy to secure multiple high-profile contracts, many of which have yet to commence billing, promising further ARR growth into 2026.

Despite headwinds from a strengthening Australian dollar that tempered reported revenue growth in AUD terms, the underlying U.S. dollar revenue trajectory remains robust. This currency effect highlights the importance of looking beyond headline figures to understand the company’s true operational progress.

Financial Strength and Growth Outlook

Stakk’s balance sheet has been notably fortified, with cash reserves swelling to $15.1 million by the end of the second quarter of fiscal 2026, up from just $0.47 million a year earlier. This financial strength provides a solid foundation for continued organic growth and the pursuit of further strategic acquisitions across the U.S., Europe, and Asia Pacific.

The company remains on track to reach breakeven in calendar year 2026, supported by scalable SaaS operating leverage and a growing contracted ARR base. The board’s disciplined approach to capital deployment and focus on ARR expansion positions Stakk as an emerging leader in embedded fintech services.

Chairman Nikhil Ghanekar emphasised the company’s execution discipline and long-term value creation, highlighting the successful pairing of strong technology with an effective distribution strategy as key drivers of the recent growth surge.